Bitcoin price closed the weekly on a red with a 3.66% decline. The price recorded at a high near $10,000 as CME futures price broke bullish. However, it was soon neutralized by selling pressures. The weekly closing price is $9207.
The market remained dull for the most part of last week. The primary range of the price was $200 between $9350 and $9150.
According to Tone Vays sequential analysis, the historic break on 25th October signals a long-term bullish reversal. However, it is subject to confirmation with this week’s close. It needs to above last week’s high. He specified his conditions in order to be a long-term bull at the moment,
So I would need to see pretty much $10,000 broken by next week in order to be bullish.
Bull Flag or Another Descending Triangle?
The consolidation after a massive price surge last Friday has kept traders guessing of its’ next big move. A short term continuation or bearish pattern after a big move on the upside is an indication of another leg-up. This formation is known as the bull flag. Sawcruhteez, a chart analyst and expert trader in his price analysis update stated his conditions for a bearish reversal, he said,
“[It] is when the length of this flag starts to get too wide in relation to the prior run-up.”
Currently, Bitcoin is testing the breakout levels as support around $9150. While the TA is still inclined to bulls, an elongation of the break could flip the market sentiments to bears. What looks like a bull flag, could turn to a bearish descending triangle with a target below $8000.
Nevertheless, at times of uncertainty, Bitcoin’s price has been known to remain non-volatile for long stretching periods. It might also witness a couple of fake-outs or flash movements during this period. However, a break below or above $8000 and $10000 should act as confirmations from both psychological and technical perspectives.
The price of Bitcoin at 5: 00 hours UTC on 4th November is $9136. It is trading above the support at 200-Day Moving average at $9106, which remains bullish. However, it is closer to a short-term bearish break at the moment.
Do you think Bitcoin will bounce above the 200-Day Moving Average? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com